Railway Pension Rules

[Geoffers]

Hi all. I left the railway on an ill health pension some years ago, i am now 50. I was wondering if i was ever well enough to return to some sort of part time work (probably not railway related), how my railway pension would be affected? I have contacted rail pensions several times and they just say there may be a tax implcation as the pension is of course taxable. Do any other members know how railway pensions are affected if returning to work?

Thanks

 

[Stewart2887]

I do hope railway pensions are no different to all our pensions. Its taxable income, so it adds to anything you earn separately. But its possible to engineer it for maximum benefit. It will well be worth your investment to consult a financial advisor. Everyone is different. I would imagine Rail Unions have pension advisory services, if you were ever a member.

 

[ChrisRS]

Anything you earn over £12,570, your personal allowance is taxed at 20%. Railway pension is taxable and your personal allowance will be offset against that to reduce tax liability.

 

[62484GlenLyon]

Is the OP wondering whether taking part time work would affect his entitlement to his railway pension rather than any tax implications?

 

[JonathanH]

Hi all. I left the railway on an ill health pension some years ago, i am now 50. I was wondering if i was ever well enough to return to some sort of part time work (probably not railway related), how my railway pension would be affected? I have contacted rail pensions several times and they just say there may be a tax implcation as the pension is of course taxable. Do any other members know how railway pensions are affected if returning to work?

Thanks

Life changes

Find out how changes to your circumstances could affect your pension.

member.railwayspensions.co.uk

If you’re under normal retirement age and you return to work while claiming ill-health benefits, your pension may be reduced or suspended.

https://cdn.rpmi.co.uk/mp-sitefinity-prod/docs/default-source/rayn/guides-for-active-(contributing)-members/guide-for-members-applying-for-incapacity-benefits.pdf?sfvrsn=46588576_2

The continuation of your incapacity pension may be reviewed to ensure that you still meet the conditions.

If the Pensions Committee has medical evidence that you have recovered sufficiently to be able to earn a living, or are receiving earnings from employment, it can decide to reduce or suspend your incapacity pension. If this happens, you will receive your full incapacity pension again when you reach age 60** and for the rest of your life.

 

[JoerTall]

The main disadvantage in such a situation would be that a person's pension would be frozen. Suppose an elderly person already receiving a pension goes to work, having taken an official job. In that case, the annual indexation will pass by. The pension amount will remain the same until the person quits their job. Moreover, for some retirees, the pension amount for the period of official work may even decrease. We are talking about those who receive social benefits to the subsistence level. But if it is possible to live without working and if there is a good pension, it is better to refuse to work. In my case, I would suggest doing timber windows and doors at home. It's a great hobby for an elderly person!

 

[Crazyb]

Hi all. I left the railway on an ill health pension some years ago, i am now 50. I was wondering if i was ever well enough to return to some sort of part time work (probably not railway related), how my railway pension would be affected? I have contacted rail pensions several times and they just say there may be a tax implcation as the pension is of course taxable. Do any other members know how railway pensions are affected if returning to work?

Thanks

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